An inspection of the books and accounting records of a taxpayer
by the designated auditor or business tax officer for the Township
of Upper Moreland for the purpose of verifying the correct payment
of business taxes and occupational privilege taxes by the taxpayer.
An audit may be conducted in person at the taxpayer's location,
at the Business Tax Office or through the provision of copies of requested
records to the Business Tax Office through the mail.

An overpayment made to the Township of business privilege
tax, mercantile license tax or occupational privilege tax. A credit
may be used to satisfy future business tax obligations upon the written
request of the taxpayer and the filing of all required tax returns.

Receipts upon which a mercantile tax or similar tax has been
imposed by another political subdivision by reason of the performance
of the service, sale of goods or conducting business in that political
subdivision, provided that proof of payment of such tax must be provided
to the collector at the time of claiming such exclusion.

Refunds, credits or allowances given by a person to a customer
on account of defects in services rendered or in goods, wares and
merchandise sold or returned may be deducted from the amount of the
"gross receipts" of the person.

Adjustments allowed to customers may be deducted from gross
receipts if they are deducted on the face of the invoice as a medium
of adjusting the price or fee for the service and if they are not
reimbursed to the person by his supplier or some other person.

Federal, state and local taxes are not included in gross receipts
if they are collected from the customer and are separately stated
on the evidence of charge or sale, or the taxpayer produces satisfactory
proof of payment of the federal, state or local taxes.

The collector shall promulgate rules and regulations setting
forth methods of allocation of gross receipts for such cases where
the gross receipts of a business in its entirety are not subject to
tax imposed by this article by reason of the provisions of the commerce
clause of the United States Constitution or under the Constitution
of the Commonwealth of Pennsylvania.

The terms "person," "wholesale dealer" or "wholesale vendor," "retail
dealer" or "retail vendor," and "wholesale and retail dealer" or "wholesale
and retail vendor," as defined in this section, shall not include
the following:

Any organization or nonprofit corporation which is or has been determined to be an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "code"), and is exempt from federal income taxes under Section 501(a) of the Code; provided, however, that such organization or nonprofit corporation shall be required to register under § 310-5 of this article, and the tax imposed under this article shall be applicable to any "unrelated business income" of such organization or nonprofit corporation, as defined in Section 512 of the Internal Revenue Code.

The registration and tax provisions of this article apply to any person who is a wholesale or retail vendor or dealer in goods or who conducts a restaurant or other place where food or beverages are sold, except for those persons who engage in any business, trade, occupation, profession, or vocation in which there is offered any service or services to the general public or a limited number of the general public for a consideration and who are thus subject to the Business Privilege Tax Ordinance, Article I of this chapter of the Township Code of Upper Moreland Township.

The article applies not only to businesses in existence at the beginning
of the license year but also to businesses begun during the tax year
or carried on in the Township for any part of the tax year.

A person who is a wholesale or retail vendor or dealer or who conducts
a restaurant or other place where food or beverages are sold shall
have the burden of proof with respect to the assertion of any claim
that the gross receipts, or any portion of such gross receipts, is
excludable from the tax imposed by this article or that any provision
of this article is inapplicable to such person.

Every person engaging in a wholesale, retail or wholesale and
retail business in the Township shall pay an annual mercantile license
tax for the tax year at the rate of 1.5 mills on his gross receipts
for retail and at the rate of one mill of his gross receipts for wholesale,
provided no tax will be levied on any person who has registered with
the Township and whose gross receipts are $2,900 or less, provided
that a tax return is filed.

Every person who is a wholesale or retail vendor or dealer in goods
or who conducts a restaurant or other place where food or beverages
are sold shall register with the collector by completing the application
form devised by the collector and furnishing the information required
by such form, including but not limited to name, address, business
address, and nature of business. Such registration shall be done without
regard for whether any tax will be due and payable. The collector
shall, upon completion of the registration form, issue a certificate
of registration to such person. A separate certificate of registration
must be obtained each year for each place of business in the Township.
The certificate must be obtained on or before January 15 of each tax
year if the business was begun prior to that tax year. If a business
is begun or a new place of business established during the tax year,
the certificate must be obtained prior to commencing business. The
certificate shall be valid for the location for which it was issued
and the applicant only, and shall not be assignable.

A person who may engage in a business with gross receipts from wholesale
or retail sales of merchandise or restaurant as well as receipts from
services is not required to obtain both a mercantile license under
this article and a registration certificate under the Business Privilege
Tax Ordinance. Either a mercantile license or a business privilege
registration, whichever is appropriate to the majority of the taxpayer's
gross receipts, shall be obtained.

The certificate is issued for a tax year from January 1 to December
31 of each year. A certificate obtained at any time during the year
is valid only from the date of issue until the end of the year with
respect to which it is issued.

Before the issuance of a certificate, the applicant shall make payment to the collector of a registration fee for each place of business. The fee shall be that set by the Board of Commissioners and set forth in Chapter 140, Fees, Rates, and Permits, of the Upper Moreland Township Code.

All registration fees due under this article and not paid by
January 15 of the tax year shall bear interest at the rate of 10%
per month or fractional part of a month from the day they are due
and payable until paid. If any person shall neglect or refuse to obtain
a registration certificate as herein required, an additional penalty
of 10% of the registration fee shall be added by the collector and
collected.

The application for certificate of registration forms shall be available
from the Collector of Mercantile License and Occupational Privilege
Taxes, 117 Park Avenue, Willow Grove, Pennsylvania 19090. Failure
to obtain or receive the application form shall not excuse any person
from the obligation to file and obtain the registration certificate
or the mercantile tax return or payment of the applicable tax hereunder.

Each application for registration shall be signed by the applicant
if a natural person, and in the case of an association or partnership,
by a member or partner thereof, and in the case of a corporation,
by an officer thereof.

If the person is engaged in a business which is temporary, seasonal,
or itinerant in its nature, the return shall be filed and received
by the collector within seven days of the completion of such business;
and

A tax return may be filed on a cash basis or on an accrual basis,
but the return must be prepared in accordance with the method of accounting
regularly employed in keeping the books of the taxpayer. A person
who keeps his books on the cash basis will report his gross receipts
on the basis of amounts actually received during the period used as
the measure of the tax. A taxpayer who keeps his books on the accrual
basis will report the receipts from all sales made or services rendered
during the period used as the measure of tax, irrespective of the
date when such monies are collected from the customer. In either case,
the taxpayer must file on a calendar-year basis beginning January
1 and ending December 31, regardless of the taxpayer's fiscal
year.

If the taxpayer has been engaged in business prior to January 1 of
the tax year, but for less than one full year, the estimated gross
receipts shall be the average monthly gross receipts for the prior
year multiplied by 12.

If the taxpayer commences business during the tax year, the estimated
gross receipts shall be determined by multiplying the gross receipts
for the first month of business by the number of months remaining
in the tax year.

In the case of a temporary, seasonal or itinerant business for which a return is filed as provided in § 310-34C above, no estimate is computed. Instead, the tax is imposed on the actual gross receipts during the period covered by the return.

Any person who engages in business with gross receipts from wholesale
or retail sales of merchandise or from a restaurant and from service,
who registers under this article, as opposed to the Business Privilege
Tax Ordinance, shall combine and report gross receipts in a single
return.

At the time of filing the tax return on May 1 of the tax year except
as hereinbefore provided, the person shall pay in a single payment
an amount equal to the estimated tax for the current tax year and
any balance due for actual gross receipts for the prior year.

Any person with a decrease in actual gross receipts from that estimated
on the prior year's return shall be entitled to a credit on the
estimated tax for the current year in an amount equal to the overpayment
of tax for the prior year.

Tax credits resulting from overpayment by a taxpayer may only be
utilized after all then due tax returns have been filed with the Tax
Office. Failure to file a completed tax return as required will prevent
the utilization of any accrued credits.

It shall be the duty of the collector to collect and receive all
fees, taxes, interest, fines and penalties imposed by this article
and to maintain a record of all payments received and the date thereof.

The collector shall pay all fees, taxes, interest, fines and penalties
collected, received or recovered under the provisions of this article
into the Treasury of the Township for the use and benefit of the Township.

The collector is hereby authorized and empowered to enforce the provisions
of this article and, for such purpose, is duly constituted a law enforcement
officer for the purpose of instituting summary proceedings under this
article pursuant to the Pennsylvania Rules of Criminal Procedure.

The collector or representative of the collector may request
the production for inspection and copying of books and records, including
federal income tax returns and state sales tax returns with appropriate
accompanying schedules, as will enable the collector to determine
the accuracy of the taxpayer's return. Any person claiming any
exclusion for any portion of the gross receipts must maintain complete
records in support of such claim.

The collector or other designated representative is authorized to examine the books, papers and records of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made, or if no return was made, then to ascertain whether a tax should be imposed and, if so, the amount of such tax. He is further authorized to examine any person connected with any business concerning any gross receipts of the business which were or should have been returned for taxation and, for this purpose, may compel the production of books, papers, records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such business or gross receipts. The failure to provide such records or to submit to the examination shall be a violation of this article and shall subject such person to the penalties as set forth in § 310-44 of this article. Each day such person shall fail or refuse to provide such records or submit to such examination shall constitute a separate offense.

No assessment of any tax may be made more than five years after
the date on which such taxes should have been paid unless a fraudulent
return or no return is filed, in which case there shall be no limitations.
Suits for recovery of taxes may be brought within six years of the
date of assessment or date due, whichever is later, by the collector
or Township Solicitor as other debts due the Township are by law recoverable.

Any claim for a refund or use as a credit of the overpayment of the
tax imposed by this article must be made in writing within three years
of the due date for filing the tax return or one year after the actual
payment of the tax, whichever is later.

No refund or credit will be issued to a taxpayer unless all then currently due tax returns required under this article and the Business Privilege Tax Ordinance have been filed. The Tax Office shall notify the taxpayer in writing if there are any outstanding returns required to be filed before the issuance of a credit or refund. Said return must be filed before the expiration of time for requesting a refund or credit as set forth in Subsection A above or within 30 days of the notice from the tax officer if the above-referenced limitations expired after the request for refund or credit was received.

A refund or credit accrued as a result of overpayment of mercantile
license tax may be applied as payment for tax due under either the
Business Privilege Tax Ordinance, the Mercantile License Tax Ordinance
or Occupational Privilege Tax Ordinance.

If for any reason the tax is not paid when due, interest at
the rate of 1 1/4% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid shall be added
to the tax. A penalty shall also be assessed in the amount of 10%
of the unpaid mercantile tax balance due.

Any person who fails, refuses or neglects to comply with the
provisions of this article may be punishable by a fine of not less
than $50 and not more than $600 plus costs of prosecution, upon conviction
before a magisterial district judge.

The collector is hereby authorized to enter into such agreements
with officials of other political subdivisions of the Commonwealth
of Pennsylvania for the purpose of collection of taxes imposed by
this article and with the Secretary of the Treasury of the United
States for access to copies of federal tax returns for the purpose
of collecting the tax hereby imposed.

Each taxpayer contacted by the Business Tax Office regarding
the assessment, audit, determination, review or collection of mercantile
license tax shall receive a notice containing the following information:

"You are entitled to receive a written explanation of your rights
with regard to the audit, appeal, enforcement, refund and collection
of local taxes by calling the Business Tax Office at (215) 659-3100,
extension 343 or 251, during the hours of 8:30 a.m. to 4:30 p.m. Monday
through Friday."

A taxpayer may appeal any determination of the Tax Office, including an assessment, determination of underpayment, denial of refund or credit to the Tax Review Board, as set forth in Article VII of this chapter.

The Business Tax Office may enter into an installment payment
agreement under which a taxpayer will satisfy an existing tax liability
with a series of payments over time, if in the tax officer's
professional opinion such an agreement will facilitate the collection
of the tax outstanding. The duration and amount of the payment and
other terms and conditions shall be at the discretion of the Business
Tax Office. The installment agreement may combine payments for all
eligible taxes in one payment.